Pierre is French Canadian, and like many Canadians he is experiencing booming good economic times. His good fortune is likely to impact U.S. aggregate demand in what way?
a. Positively, because he prefers to make all his purchases in Canada from Canadian firms.
b. Negatively, because he prefers to make all his purchases in Canada from Canadian firms.
c. Negatively, since we are all members of
North American Free Trade Zone.
d. Positively, since he will be in a better position to purchase U.S.-made goods.
d
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Featherbedding ultimately results in greater worker efficiency and therefore greater productivity and higher wages
a. True b. False
Supply curves that are horizontal are called perfectly elastic and have an infinite elasticity, whereas supply curves that are vertical are called perfectly inelastic and have a zero elasticity
a. True b. False Indicate whether the statement is true or false
Which two groups of decision makers are included in the simple circular-flow diagram?
a. markets and government b. households and government c. firms and government d. households and firms
Effective signals
a. convey useful information from informed parties to uninformed parties. b. impose little or no cost on the signaler. c. cannot be conveyed accurately when there is an information asymmetry. d. raise the quantity sold but reduce the price sellers receive.